Client Relations Flashcards

Under SSFS No. 1, which of these must a CPA NOT do when serving as an expert witness?

Answer: Give an opinion under a contingent fee arrangement

SSFS No. 1 bars expert opinions given under contingent fee arrangements, except as the AICPA Code allows.

In a fraud investigation hired by a company's audit committee, who is generally considered the client?

Answer: The audit committee or company acting through it

Whoever engages the investigator, here the audit committee for the company, is the client the investigator reports to.

A client wants a forensic report delivered before analysis can reasonably be finished. What is the best response?

Answer: Explain the limitations and offer a scoped preliminary or oral update instead

Opinions need sufficient relevant data, so clearly labeled interim communication beats an unsupported final report.

Which practice best preserves confidentiality of client information in a forensic engagement?

Answer: Using secure, access-restricted storage and limiting disclosure to authorized parties

Restricting access and using secure storage protects confidential client data as AICPA Rule 1.700 requires.

What should a practitioner do if they discover partway through an engagement that they lack the competence for a specialized area?

Answer: Tell the client and consult or bring in qualified specialists, or withdraw

Professional competence standards require getting the needed expertise or declining the work.

Who generally owns the forensic accountant's working papers in a litigation engagement absent contrary agreement?

Answer: The forensic accountant or firm, subject to legal and contractual obligations

The practitioner generally owns working papers, though discovery, subpoenas, and engagement terms may require their production.

Which communication approach best manages client expectations at the start of a forensic engagement?

Answer: Explain the scope, timeline, fees, and that conclusions follow the evidence

Setting clear expectations about scope, cost, and objectivity prevents later disputes.